Manx Telecom eyes global expansion as it reveals £255m takeover offer
Isle of Man mobile and broadband provider Manx Telecom saw its shares jump almost 15 per cent this morning after posting a modest rise in revenues for the full year as it announced a £255m takeover.
Read more: Manx Telecom on track to hit revenue growth targets
The figures
Revenue rose 3.8 per cent from £78.5m to £81.5m.
Underlying profit before tax slipped from £15.1m to £14.8m.
Cash flow fell slightly from £20m to £18m.
Net debt increased from £56.9m to £63m.
Why it’s interesting
Manx Telecom, which is one of the largest employers on the Isle of Man, has secured a solid set of results for the year.
Revenues rose almost four per cent, boosted by a 12 per cent increase in mobile revenues.
The firm said its underlying profit was hit by increased interest payments, while net debt increased as a result of increased investment over the year.
Manx said it has strengthened its domestic offering as it focuses on increasing its market share in mobile and broadband on the Isle of Man.
The company also operates a global division called Vannin Ventures, which this year launched MT Clear Sound, which provides mobile services for people with hearing loss. The firm said the new technology will be branded ‘Audacious’ when it launches in the UK market this summer.
“There is a potential for Vannin Ventures to be as big as Manx Telecom,” chief executive Gary Lamb told City A.M, but he said the firm will not lose sight of the importance of its on-island business.
Manx said it met its target of rolling out full-fibre broadband to 10 per cent of the island’s premises in 2018. Lamb said the firm will invest a similar amount in 2019 and is aiming to reach 20 per cent coverage by the end of the year.
While Manx is monitoring the progress of the 5G rollout across the UK, it said the new high-speed network is not a priority.
“There’s no immediate need for us to invest in 5G. It’s not something we’re going to do this year,” Lamb said.
In a separate announcement the firm said it has reached an agreement for a £255m takeover by infrastructure investment vehicle Basalt Infrastructure Partners.
The firm has made a recommended offer of 215p per share, which Manx said will provide capital for further investment. The deal is subject to shareholder approval.
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What Manx said
Chief executive Gary Lamb said: “2018 was another year of robust performance for Manx Telecom. Thanks to the hard work of our people, our on-island telecoms business has remained stable – with a solid performance in fixed line, broadband and data services, and growth in mobile – while our international growth business, Vannin Ventures, has seen growth in global solutions and has put down strong foundations for the future.
“Goshawk Communications has made good progress, not least with our recently branded UK proposition ‘Audacious’.”